Unicorn travel tech startup Navan eyes IPO as it nears profitability this year

Travel and expense management platform Navan is having a great year even as thousands of tech startups struggle to afloat due to funding drought. The $9 billion travel tech startup said on Monday that it’s on track to achieve profitability this year and ‘not far’ from initial public offering (IPO).

In an interview with CNBC on Monday, Navan CEO Ariel Cohen revealed that the company is gearing up for an IPO later this year as it edges closer to profitability. This news signals a growing optimism among leaders of privately held startups about their prospects in the public markets.

Navan, which boasts a valuation of $9.2 billion and has raised over $1.5 billion in venture funding, specializes in travel expense management solutions. The company is experiencing robust growth, with overall revenue increasing by an average of 40%. Particularly noteworthy is the fintech arm of the business, which is seeing a remarkable growth rate of 100%.

While Cohen refrained from providing a specific IPO date, he expressed confidence that the company is on the brink of this significant milestone. This optimism is fueled by Navan’s strong financial performance and Cohen’s belief that the company has reached a level of maturity that makes it less susceptible to volatile market conditions, CNBC reported.

“We can see the signals,” Cohen said when asked about the timing of the IPO. He noted that Navan has been restructuring its leadership and making strategic changes to its board, indicating the company’s readiness for this next step.

Last month, Navan announced the return of Rich Liu, previously Navan’s chief revenue officer, as CEO of Navan Travel, the company’s travel division. Liu is renowned for his expertise in scaling companies from seed stages to IPO and beyond.

Additionally, Navan appointed Amy Butte, the former CFO of the New York Stock Exchange, to its board of directors as audit committee chair. Butte played a pivotal role in overseeing the NYSE’s transition to a public company in 2006.

Cohen, however, remains cautious about promising a specific IPO date. “I don’t want to give a date,” he told CNBC, adding that he hasn’t disclosed any timelines to his family, board, or employees. “At the end of the day, there are things that are out of my control. The market can collapse. There are elections in the U.S. There are wars. So I never actually promise things to people if I don’t know that the delivery is in my control.”

Navan’s journey underscores the resilience of the travel tech sector and the growing importance of efficient expense management solutions within the industry. As the company prepares for a potential public offering, it exemplifies the strong potential and dynamism of privately held startups ready to enter the public markets.

Originally founded in 2015 by Ariel Cohen and Ilan Twig, the company was previously called TripActions before it rebranded a few years ago to Navan. It began as a business travel platform designed to deliver a seamless experience for travel agents and established players such as American Express, BCD Travel, and SAP Concur. Its customers include Unilever and Christie.